Is China Unicom's Entry Into Fintech Sign Of A Bubble?

Fifteen years ago, some staid Chinese manufacturers got sexy by calling themselves Internet companies, and China Unicom's latest move into the very busy fintech sector harkens back to that era.

Chinese telecom operator China Unicom just held the opening ceremony for its financial company Unicom Group Finance Company Limited, and the China Banking Regulatory Commission Beijing Office issued a financial license to the company during the ceremony.

Unicom Group Finance Company Limited has registered capital of CNY3 billion. China Unicom's deputy general manager Li Fushen will be chairman of the financial company; China Unicom's general manager of financial department Li Zhangting is appointed vice chairman of the new company; and Wang Fang is appointed director and general manager of the company.

Li Fushen said at the opening ceremony that the establishment of the financial company is an important measure for China Unicom to focus on development and innovation in the future.

As an important part of China Unicom's financial technology services sector, Unicom Group Finance Company Limited will implement integrated operations and management of the group's capital to provide quality financial services to the members of the group and ultimately provide services to consumers. In addition, the financial company will further promote China Unicom's centralized management of funds, optimize resource allocation, enhance financial risk prevention and control capabilities, train professional financial talents, and help the group achieve its strategic goals.